Governor McKee’s budget proposal aims to address a projected deficit while boosting key services and initiatives across Rhode Island.
Providence: So, Governor Dan McKee just dropped his proposed budget for fiscal 2026, and it’s a whopping $14.2 billion. That’s a lot of cash! But here’s the kicker: the state is facing a nine-digit deficit. You wouldn’t guess it from the size of this budget, though.
This budget is the biggest in Rhode Island’s history, coming in $252.8 million more than last year. Even with all that spending, officials are saying they’re preparing for a “return to normal” now that pandemic aid is off the table.
Joe Codega, the state budget officer, mentioned that while there’s a projected deficit of $223.3 million, it doesn’t mean revenue isn’t growing. The state expects a 2.5% revenue increase, but costs are rising even faster at 3.7%. So, they’re looking to cut costs in various areas, like state leases and equipment.
McKee’s plan doesn’t include broad tax hikes, which is a relief for many. However, there are some targeted fee increases to fund important programs like workforce development and homelessness services.
Now, the ball is in the court of the Rhode Island General Assembly. They’ll spend the next several months tweaking McKee’s proposal before it goes into effect on July 1.
One of the big focuses is workforce development. McKee wants to boost job training and education initiatives, especially for high school and adult learners. They’re putting over $9 million into programs that help people get the skills they need to succeed.
On the education front, even though fewer kids are in public schools, McKee is still increasing funding for K-12 education by $43.4 million. The funding formula is mostly staying the same, but there’s a little extra for schools in poorer areas.
McKee is also trying to tackle homelessness by extending the hotel tax to short-term rentals like Airbnbs. This could bring in some much-needed cash for homeless services.
Another hot topic is the proposed ban on assault-style weapons. McKee is using the budget to push this initiative, which has faced challenges in the past.
Healthcare is also a priority. McKee wants to raise reimbursement rates for primary care providers and is putting money into mental health services for kids. There’s a lot going on, and it’s clear that McKee is trying to address some big issues while keeping an eye on the budget.
Overall, it’s a mixed bag. There are some promising initiatives, but the state still has a lot of work to do to balance the budget and meet the needs of its residents.
